EurOmax announces amendments to agreements with Freeport



    
    /THIS NEWS RELEASE AND THE INFORMATION CONTAINED HEREIN ARE NOT FOR
    DISTRIBUTION IN THE UNITED STATES/
    

    VANCOUVER, June 26 /CNW/ - EurOmax Resources Ltd. ("EurOmax" or the
"Company") is pleased to announce that it has entered into amending agreements
with Freeport-McMoran Exploration Corporation (formerly Phelps Dodge
Exploration Corporation) ("FMEC") in respect of each of:
    
    (i)    the option agreement pursuant to which it has the option to
           acquire a 100% interest (subject to the right of FMEC to reacquire
           a 70% interest) in exploration licences covering certain
           properties in Macedonia (the "Macedonia Option Agreement"); and

    (ii)   the option agreement pursuant to which it has the option to
           acquire 100% (subject to the right of FMEC to reacquire 70%) of
           the issued and outstanding shares of a subsidiary of FMEC holding
           exploration licences covering certain properties in Serbia (the
           "Serbia Option Agreement").
    

    The amending agreements are hereinafter referred to as the "Macedonia
Amendment" and the "Serbia Amendment", respectively.
    Each of the Serbia Option Agreement and the Macedonia Option Agreement
provide that to exercise the option granted thereunder, EurOmax must, in
material part, complete a minimum drilling program, incur a specified amount
in exploration expenditures and satisfy all work commitments required by the
terms of the optioned exploration licences.
    Under the Serbia Option Agreement, and by way of a separate services
agreement in respect of the Macedonia Option Agreement (i) FMEC manages the
exploration activities on the subject properties (and receives a management
fee therefor); and (ii) exploration expenditures are paid directly by FMEC
using funds prepaid by EurOmax. FMEC has however, on occasion, incurred
exploration expenditures on behalf of EurOmax using its own funds.
    EurOmax did not complete, by the application deadline, the minimum
drilling program required by either of the Serbia Option Agreement or the
Macedonia Option Agreement. Also, approximately US$200,000 of the minimum
exploration expenditures required by the Macedonia Option Agreement and Serbia
Option Agreement was paid using FMEC's own funds and that amount must be
repaid by EurOmax. In addition, EurOmax continues to satisfy the work
commitments required by the Serbia Option Agreement, which renew annually.
    The Macedonia Amendment and the Serbia Amendment extend the period for
completion of the minimum drilling program to December 1, 2009. The Serbia
Amendment also grants the Company until December 31, 2009 to satisfy the work
commitments required thereby. Finally, the Macedonia Option Agreement and
Serbia Option Agreement grant the Company until July 15, 2009 to repay all
amounts now owing by EurOmax to FMEC in respect exploration expenditures,
which amount the Company estimates to be approximately US$200,000. Failure to
complete the minimum drilling program under the Macedonia Option Agreement by
December 1, 2009 will cause that agreement and the option granted thereby to
terminate.
    Failure to complete the minimum drilling program under the Serbia Option
Agreement by December 1, 2009 or the annual minimum work commitment by
December 31, 2009 will cause that agreement and the option granted thereby to
terminate.
    In addition, the Company and FMEC have agreed extend the term of their
strategic alliance agreement from July 1, 2009 to July 1, 2011. Pursuant to
that agreement, EurOmax and FMEC agreed to cooperate with each other in the
exploration of areas within Serbia and Macedonia not covered by the Macedonia
Option Agreement or the Serbia Option Agreement.

    
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    On Behalf of the Board of Directors

    "John C. Menzies"
    Chairman and CEO

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    EurOmax Resources Limited is listed on TSX Venture Exchange Symbol: EOX
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For further information:

For further information: www.euromaxresources.com; Investor Relations:
David Stothard, T: (347) 284-0062, d.stothart@euromaxresources.com


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